Week 3 Knowledge Check 6/7 Score:

Concepts Mastery Questions

MONOPOLY
100%
1
OLIGOPOLOY
0%
2
PROFIT
MAXIMIZATION
100%
3 4
MARKET
STRUCTURE
100%
5 6 7
MONOPOLY Concept:
Concepts Mastery Questions
MONOPOLY 100% 1
1.
In a monopolistically competitive market,
firms produce differentiated products A.
there are barriers to entry B.
firms produce homogeneous products C.
the demand for any firm's product is
perfectly elastic
D.
The correct answer is: A.
Correct!
OLIGOPOLOY Concept:
Concepts Mastery Questions
OLIGOPOLOY 0% 2
2.
Strategic decision making is most important in
competitive markets A.
monopolistically competitive markets B.
oligopolistic markets C.
monopolistic markets D.
The correct answer is: C.
Incorrect
PROFIT MAXIMIZATION Concept:
Concepts Mastery Questions
PROFIT
MAXIMIZATION
100% 3 4
3.
The general monitoring problem implies that
profit maximization should always be
considered to be a firm's goal
A.
there is a cost of supervising employees B.
so that they work toward the owner's
goals rather than their own
government must intervene to protect
national goals
C.
competition will ensure common goals
among the owners and managers of a
firm
D.
The correct answer is: B.
Correct!
4.
Lazy monopolists are characterized by the tendency to
maximize profits at the cost of losing
market share
A.
pay too much to protect their monopoly
positions
B.
earn enough profits to keep their
shareholders happy without trying too
hard to hold costs down
C.
minimize losses so that the dividends of
shareholders are maximized
D.
The correct answer is: C.
Correct!
MARKET STRUCTURE Concept:
Concepts Mastery Questions
MARKET
STRUCTURE
100% 5 6 7
5.
Judgment by performance means that the competitiveness of a
market is determined by
the actual behavior of firms in the market A.
the structure of the industry B.
. the number of firms in the market C.
technological considerations D.
The correct answer is: A.
Correct!
6.
Consumers tend to accept the market restrictions imposed by
suppliers because
governments prevent them from
organizing
A.
they see themselves as laborers and
therefore benefit from restrictions
B.
their costs of organizing are higher than
the cost of collusion by the suppliers
C.
when combined, their losses are small for
the group as a whole
D.
The correct answer is: C.
Correct!
7.
The fact that U.S. managers' salaries are about four times higher
than those of comparable managers in Japan, where banks control
firms more closely, is probably
an example of the monitoring problem in
the United States
A.
an example of X-inefficiency in Japan B.
due to the fact that the U.S. economy is
much less competitive
C.
due to the fact that there are more natural
monopolies in the United States
D.
The correct answer is: A.
Correct!